Indonesia Pay TV Operator Plans $400M IPO

PT MNC Skyvision, Indonesia’s largest pay TV provider, has reinitiated a plan to raise $300-$400 million via an initial public offering in June, Reuters reported Friday. The company, a unit of media group PT Global Mediacom, plans to sell a 20-30% stake to the public while several anchor investors, including U.S private equity firm Saban Capital Group, have expressed interest in buying a significant stake in the IPO, Reuters said.

(Reuters) – PT MNC Skyvision, Indonesia’s largest pay TV provider, has reinitiated a plan to raise $300-$400 million via an initial public offering in June to take advantage of rising consumer spending in Southeast Asia’s biggest economy, sources said on Friday.

 

The company, a unit of media group PT Global Mediacom , plans to sell a 20-30 percent stake to the public while several anchor investors, including U.S private equity firm Saban Capital Group, have expressed interest in buying a significant stake in the IPO, sources said.

 

“The parent firm [Global Mediacom] aims to launch the IPO in June and they’re not too worried about demand now,” said one of the sources who declined to be identified as they’re not authorized to speak to the media.

 

Indonesia economy expanded 6.5 percent in 2011 while its GDP per capita has also surpassed $3,000, which analysts believe will spark huge domestic demand as its middle class grows.

 

Media companies stand to benefit from higher disposable income s as more people buy TV and subscriber-based media such as Pay TV . At present, TV penetration is 60 percent while pay TV penetration stands at 3 percent, according to government figures.

 

MNC Skyvision is Indonesia’s market leader in satellite pay TV with a 78 percent market share from its two brands Indovision and Top TV. Indonesia’s pay TV market penetration rates remain still low.

 

MNC Skyvision has more than 850,000 subscribers in the first quarter of 2011 and expected to reach 1.1 million subscribers by the end of that year, the company has said.

 

The firm, which is part of a media empire owned by Hary Tanoesoedibjo, re-appointed Morgan Stanley as joint global coordinator for the IPO.

 

It decided to drop a mandate for UBS who acted as global coordinator last year and appoint JP Morgan instead, sources said.

 

The company had planned to launch the IPO in the third quarter of last year but decided to delay due to concerns over pricing given weak investor sentiment due to the eurozone debt crisis.

 

The MNC Group, JP Morgan and Morgan Stanley declined to comment. (Reporting by Janeman Latul; Editing by Matthew Bigg)